July 12, 2013 - MDT Midday Missive w/Grain Trade Alert

While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to six-month time frame, Mad Day Trader, provided by Jim Parker, will exploit money-making opportunities over a brief ten minute to three day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points.

The Gilts and the Bunds have been the better performing Bond markets over the past couple of days.

This has manifested itself into value traders buying the Dax.
Trade location is key. Market participants are using the
8000 level to key off of. Short below/Long above.

The later it gets in the day with less market participants, the greater the propensity for the Bots to run up the Equity Indices on the close.

There is no reason that the Spu's don't rally to the old high of 1686

Time Frame trading...

Grains...

I'm willing to give the Soybeans a little more time however I think you've already seen today's low in the November @ 12.66.

SX...12.55-62 is the lowest risk buy zone. (Buy 25%) position Into this zone to lead off on the trade. Only closing below 12.50 would change the pattern.

The opportunity on this trade is in the Soybeans, not the Corn or Wheat.

Option traders...we're looking for a 1-2 dollar rally in the Beans over the course of the summer.

JJG...Buy the JJG @ 49
MOO..BUY Moo @ 52

These are the lowest risk buy levels. If we get these great, otherwise we'll look Monday.

The risk on the ETF's is app. 1 dollar on each from the Buy levels.

For Glossary of terms and abbreviations click here.

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